Travel trailer and extended warranty

[kellylipp]

Just purchased a new FunFunder 214WSD. Was somewhat pressured into buying a seven year extended warranty (ok a lot pressured). Cost $1400 and based on the fine print seems to cover a reasonable number of common items with reasonable exclusions due to acts of God, etc.

I have the option of canceling the policy within 60 days.

I researched extended warranties across all the forums here and note that few of the discussions focused on TTs. Lots if chatter about Class A.

Thoughts, anecdotes, sob stories, etc., welcome. Keep it or dump it?

Thanks,

Kelly
Elbert Colorado

[twocoots]

We bought one of those extended warranties in 99 when we bought our Dutchman tt. It was one of the seven year warranties. One week before it ran out our AC went out. The replacement AC a carrier was installed for the cost of our deductible. I was told the total cost was $1200. The Piece of mind was there and the AC replacement was worth it. I don't remember what we paid originally. The tech who replaced the unit said that 6-7 years was all the dometics lasted because of the vibration. You may have the eels enemy money now but when something breaks you may not have it. There are a lot of systems in a tt or MH. Read the fine print. Keep your receipts. Enjoy your tt.

[br9]

I bought one with my trailer and I'm not sorry. We have used ext. warrenties a couple times on cars. And glad we had them. Had ext. warrenty on last trailer and got prorated money back when traded in.

[bigeasy]

keep it, I work in a campground and see all kinds of problems, expensive ones. Just remember that RV's break when you use them and break when you don't.

[Ridgerunner]

I to just bought a new 2012 and got a 7 year extended warranty most everything that could go wrong will cost and if anything is going to go wrong it seems to happen a lot after the one or two year warranty is up on the trailer, i know some people that didn't even have to use there's in the seven years but knowing its there if anything gos wrong is nice to know so don't worry about its a good investment on you new rig happy camping.

[MikenAmber]

We also purchased one with our T/T in 2008 it's for seven years and was very reasonable and covers everthing that came with the unit including all appliances, TV, seals. etc. for the money it's good insurance to know any major replacement cost is covered less a minimal $100.00 deductable.

[edj]

CANCEL the contract. There is a reason that there was high pressure for you to buy a service warranty. There is a HUGE profit for the dealer and insurance company in these things. Take that $1400 you were going to blow on the contract and put it in a savings acct. If you ever have a problem that would have been covered (check the fine print of the contract), take the money out of the savings acct less the deductible you would have paid. It is almost a sure thing that you will have a big balance left in the savings acct after the service contract would have expired.

Sure, there are a small percentage of people who buy these contracts that have an expensive (more than the price paid for the contract) failure(s) that is not covered under the manufacturer warranty and is covered under the service contract. But those occurrences are few and are a rarity. If they were not rare, the insurance company would not be selling the contracts or they would be even more expensive.

[kellylipp]

I was expecting a more balanced response and probably leading to the more negative side if it. Thanks for the input and if you have more keep it coming..,

K

[Ottawa]

I believe that you should look at the same way you look at any insurance. How able are you to make your self whole if something goes wrong. If you have enough financial resources to handle any problems, you are better off "self insuring". If you could not cover the major repair, then you maybe better off buying insurance. The reason that more MH's probably carry some warranty insurance is the cost of a problem could be huge, in the tens of thousands of dollars. Generally, TT's the order of problems would be in the hundreds of dollars, which most people could handle within their budget. In the end it is your decision and you will have to live with it.

[Loren B.]

Kelly,

I agree with Ed J and Ottawa. First consider whether or not you can afford to pay to fix problems yourself. You obviously can afford at least $1400 to fix problems yourself, because that’s what you’re willing to pay for the insurance.

Then, as Ed says, weigh the cost of the insurance against the potential cost of any repairs. To do this you will need to take into consideration the quality of your trailer. My guess would be that most items likely to fail, like furnace, refrigerator, etc., would cost about $1400 or less to fix. On the other hand, if your trailer brand is known for leaky roofs and has wooden sidewall framing, then repairs could cost more than the trailer is worth. (Be sure that something as catastrophic as that is covered.) Only you can decide.

Another issue, discussed by Ed, is the true cost of the insurance. If you put that $1400 into a CD that pays 6%, it would be worth $2105 after seven years. Also, consider that you are probably buying just a six or even five-year insurance contract, since your new trailer probably has a one or two-year warranty from the manufacturer.

Recognize that you are not buying an "extended warranty" from the manufacturer. You are buying an insurance policy against failures with your trailer. It’s a contract, just like your auto or homeowners policies.

Last, from my reading, it appears that many (probably not all, though) of these extended warranty companies are in the business of denying coverage. If you do buy the coverage, be sure to read your policy carefully and comply absolutely with every single condition. Usually, at the least, you must call the company to get prior approval for any repairs.

If it were me, I wouldn’t buy it. But in the end, it’s your money and your choice.

Good luck,
– Loren

[RVhauler]

As MH has a number of high priced chassis items included beside the RV items then insurance is understandable. As for the TT you only really have about 4-5 applicance items to be covered (in some cases you will have dual items ie; A/C-furnace). On my 1997 Kountryaire I have had a couple of control boards to replace(aprx $100 ea) and an A/C (included an 3 year extended warranty-Aprx $850). On the previous TT which had for $20 years only parts replacement was tires. Most of the major applicances mfg will offer an extended warranty for 3 or so years for a low price

[Cat320]

If it is with a good company, and you sell the RV, the policy should be transferable...for a small fee. Or if you sell it and the buyers don't want it, you can cancel it and get some money back. I recently sold a Montana 5th wheel, new owners did not want the warranty (don't ask me why)...so I cancelled it and got over $500 back.

[mythplaced]

Quote:

Originally Posted by Loren B. If you put that $1400 into a CD that pays 6%, it would be worth $2105 after seven years.

Please, PLEASE tell me where I can get a 6%CD...

I want in

[Loren B.]

Quote:

Originally Posted by mythplaced Please, PLEASE tell me where I can get a 6%CD... I want in

Mike,

I thought that 6% was probably a high guess. It's been a long time since I've bought a CD.

My point was to remind the original poster that paying $1400 up front to cover unknown expenses later may cost more than the actual $1400.

-- Loren